El Nino and World Primary Commodity Prices Warm Water or Hot Air?

This paper examines the historical effects of the El Niño-Southern Oscillation (ENSO) cycle on world prices and economic activity. The analysis indicates that ENSO has economically-important and statistically-significant effects on world real commodity prices. A one-standard-deviation positive surpr...

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Bibliographic Details
Main Author: Brunner, Allan
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2000
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Australia 
653 |a Inflation 
653 |a Farm produce 
653 |a Dynamic Treatment Effect Models 
653 |a Deflation 
653 |a Open Economy Macroeconomics 
653 |a Diffusion Processes 
653 |a Consumer prices 
653 |a Agriculture: General 
653 |a Time-Series Models 
653 |a Investments: Commodities 
653 |a Price Level 
653 |a Commodities 
653 |a Prices 
653 |a Macroeconomics 
653 |a Commodity prices 
653 |a Agricultural commodities 
653 |a Dynamic Quantile Regressions 
653 |a Agriculture: Aggregate Supply and Demand Analysis 
653 |a Investment & securities 
653 |a State Space Models 
653 |a Commercial products 
653 |a Commodity Markets 
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520 |a This paper examines the historical effects of the El Niño-Southern Oscillation (ENSO) cycle on world prices and economic activity. The analysis indicates that ENSO has economically-important and statistically-significant effects on world real commodity prices. A one-standard-deviation positive surprise in ENSO, for example, raises real commodity price inflation about 3-1/2 to 4 percentage points. Moreover, ENSO appears to account for almost 20 percent of commodity price inflation movements over the past several years. ENSO also has some explanatory power for world consumer price inflation and world economic activity, accounting for about 10 to 20 percent of movements in those variables